Landfill Tax

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Contents

What is Landfill Tax?

What does the tax apply to?

How is the tax charged?

Do I have to charge VAT as well?

Accounting for the tax

What records will I need to keep?

Landfill Communities Fund

Further help and information

 

What is Landfill Tax?

Landfill Tax is a tax on the disposal of waste. It aims to encourage waste producers to produce less waste, recover more value from waste, for example through recycling or composting and to use more environmentally friendly methods of waste disposal.

What does the tax apply to?

Landfill Tax applies to all waste:

  • disposed of by way of landfill
  • at a licensed landfill site
  • on or after 1 October 1996
  • unless the waste is specifically exempt

Notice LFT1 A general guide to Landfill Tax explains what constitutes waste.

How is the tax charged?

The tax is charged by weight and there are two rates. Inert or inactive waste is subject to the lower rate.

Registering for the tax

You will need to register if you are a landfill operator making or intending to make taxable disposals. Unlike VAT there is no registration threshold.

To register you need to complete Registration Form LT1 and Site Detail Form LT1A. You may also need to complete other forms depending on the status of your business. The different forms are listed in Notice LFT1 A general guide to Landfill Tax. Copies of these forms are available on this website. You can get further information and copies of the forms from:

Central Collection Unit
HM Revenue & Customs
Alexander House
21 Victoria Avenue
Southend
SS99 1AY

Tel: 01702 366 558
Fax: 01702 366 562

Do I have to charge VAT as well?

Yes. VAT applies to the full amount charged on a waste disposal, including the Landfill Tax.

Accounting for the tax

Once you have registered HM Revenue & Customs (HMRC) will send you a return, usually every three months, for you to complete and send back with any payment of tax due.

What records will I need to keep?

In addition to your normal business records you will need to keep:

  • a Landfill Tax account (a quarterly summary of total Landfill Tax due detailing any credits of tax and any adjustments)
  • a temporary disposal account
  • a record of credits
  • a bad debt relief account
  • invoices

You may also need to keep additional records if you are allowed to work out your tax using a special scheme or do not use a weighbridge.

Landfill Communities Fund

The Landfill Communities Fund (formerly the Landfill Tax Credit Scheme) enables landfill site operators to claim tax credit for contributions they make to approved environmental bodies for spending on projects that benefit the environment. The environmental bodies are those enrolled by Entrust, the regulatory body for the scheme.

Further information on the scheme is available from:

Further help and information

If you are in any doubt or would like further help you can ring the HMRC VAT and Excise Helpline on 0300 200 3700.

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$START-DATA$ title=Landfill Tax^ summary=This guide is an introduction to Landfill Tax, how to register, and what records to keep. This guide also contains important budget information, such as changes in landfill tax rates and landfill tax exemptions.^ doctype=BasicGuides^ date=05-Dec-2013^ author=MP6031699^ $END-DATA$
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FAQ's

See the Excise & Other FAQs if you have any queries.

Useful Links
  • The following external links may also be of relevance:
  • www.entrust.org.uk
  • Please note HMRC is not responsible for the content of external sites.
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